Finance (No. 3) Bill

Debate between Ed Davey and Anne Main

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 8th January 2019 Commons Chamber

[Mrs Main]

My hon. Friend is exactly right. There are many versions of that story. I have constituents who say that HMRC was made aware of these arrangements but no objection was raised until many years later. That has to be fundamentally wrong. What more due diligence can anyone do?

I will conclude, because I know the right hon. Member for Kingston and Surbiton wishes to speak. The huge pressure and distress—even suicidal thoughts—that this measure has put in people’s minds is totally unacceptable. I say to the Minister: if we do nothing else tonight, can we accept new clause 26? There is a clear ambiguity in the law that applied at the time—perhaps clarity has been provided now. The fact that people cannot negotiate a reasonable settlement even though they acted in good faith at the time, and are being pursued to the point of the destruction of their careers, homes, family lives and marriages, is completely unacceptable. We clearly need a review, and I hope the Minister takes that on board and accepts new clause 26. If it is pressed to a vote, I shall vote for it.

[Sir Edward Davey (Kingston and Surbiton) (LD)]

I thank the hon. Member for St Albans (Mrs Main) for her passionate speech. I also thank the right hon. Member for Loughborough (Nicky Morgan), who chairs the Treasury Committee, and right hon. and hon. Members from across the House, who have campaigned as a Parliament against this measure and supported new clause 26. It is my wish to divide the House on the new clause if the Minister does not accept it.

Let me make it crystal clear from the start that I support the Treasury’s aim of closing tax loopholes and stopping tax avoidance. The introduction of loan charges in the Finance Act 2017 to stop future abuse was correct, and the review my new clause proposes would not seek to prevent the Treasury from stopping that abuse from the 2016 Budget announcement. Instead—somewhat inelegantly, due to the rules of Finance Bill debate—new clause 26 aims to focus the minds of Treasury Ministers on the gross unfairness of the way the 2017 Act went about closing an unacceptable tax loophole.

I believe that the review envisaged in the new clause would reveal the unfairness of the retrospective nature of the current loan charge legislation in two ways. First, it would show how that retrospective nature is even more severe than non-retrospective but backward-looking proceedings for the recovery of lost tax elsewhere in our tax legislation. Secondly, it would show that the test of reasonableness included in proposed new section 36A, if applied to the loan charge, would in fact prevent any retrospective tax collection from the loan charge.

Let me remind the House why the Treasury should, after the review, ditch the retrospective nature of this measure, delay April’s implementation and amend the charge so it focuses only on payments made after 2016. It is because the loan charge, as introduced, offends against the rule of law. It is the sort of taxation that led the barons to rebel against King John and gave birth to Magna Carta. It is simply not acceptable for a Government to introduce a law that makes illegal something someone did years ago, when that action was considered legal. That is a clear principle.

Energy Bills

Debate between Ed Davey and Anne Main

Monday 2nd December 2013 Commons Chamber

[Mr Davey]

One of the things we have done is to look at the rural sub-obligation, which is a fourth component of the ECO, to ensure that it is working more effectively for people in rural areas, and we will be providing further details later.

[Mrs Anne Main (St Albans) (Con)]

Does my right hon. Friend agree that these problems have built up over many years and were not tackled by the previous Labour Government? He may also wish to know that in 2006, under the previous Government, fuel poverty in St Albans was at 6.4%, and it rose to a height of 13.7%. Does he agree that freezing energy for one year only would do nothing and that we need a sustained approach to cutting the number of taxes on people?

[Mr Davey]

My hon. Friend is right that fuel poverty rose to record levels under the previous Government. On their definition, the figures have come down under this Government. It is also interesting to note that the average increases in gas and electricity prices in the last Parliament under Labour were higher than the average annual increases in gas and electricity prices under this Government.

UK Nuclear Energy Programme

Debate between Ed Davey and Anne Main

Monday 21st October 2013 Commons Chamber

[Mr Davey]

I am grateful to the hon. Gentleman for his welcome. He is right that we have negotiated a deal so that 57% of the value will go to UK firms, ensuring that they can get the benefit and develop their skills and that UK employees can be a big part of the project. We would have liked the figure to be higher, but unfortunately not a lot has happened in the nuclear industry for many years. I wonder whether Opposition Members might like to explain why that is. This Government have looked forward to ensure that there will be a better future for British nuclear firms, not only as a result of this deal, but because earlier this year my right hon. Friend the Secretary of State for Business, Innovation and Skills and I published an industrial strategy for the UK’s nuclear industry, looking at all aspects, so that British firms and British people can benefit as we develop clean, low-carbon nuclear power in this country.

[Mrs Anne Main (St Albans) (Con)]

I welcome the statement and, in particular, the fact that there will be a degree of protection for the environment because the nuclear industry will be responsible for the clean-up. Will the Minister give a little more detail on how much will be taken in the protection fund and whether there will be Government oversight of its administration?

[Mr Davey]

My hon. Friend makes an important point. One aspect of the arrangements that I believe will be particularly welcomed by consumers and taxpayers is that the operator will have to start meeting the clean-up costs from day one of generation, which has not been the case in the past. Two thirds of my Department’s budget is spent meeting the decommissioning costs of past nuclear power stations that have long finished generating electricity. That was a scandal and past Governments failed. This Government have learnt the lessons and ensured that the decommissioning costs are up front. There will be oversight of how the fund is operated to ensure that we protect future generations and taxpayers.

Fuel Poverty and Energy Efficiency

Debate between Ed Davey and Anne Main

Wednesday 16th January 2013 Commons Chamber

[Mr Davey]

My hon. Friend is absolutely right, and I am coming on to talk about that right now. Looking at the actions we are taking, it is clear that we are helping the poorest and most vulnerable with targeted extra money to help with winter bills. We need to make sure that those who feel the cold most sharply and those who can least afford to pay can put on the heating in the knowledge they will receive extra help to pay for it. For many pensioners, winter fuel payments make a valuable contribution to paying their energy bills. That is why we have protected winter fuel payments in line with the budget set out by Labour. Last year, we made over 12 million payments to over 9 million households at a cost of around £2.6 billion.

We are doing more for the poorest pensioners and for many other vulnerable households through cold weather payments. When the coalition came to office, cold weather payments were at £8.50 a week and had only temporarily been raised to £25. As cold weather payments target the most vulnerable when they need it the most, the coalition decided, despite the tough financial situation, to keep cold weather payments at £25 a week and to make that permanent, investing an extra £50 million a year. About 4.2 million people are currently eligible—older people on pension credit, disabled adults, families with children under five on an income-related benefit. They can now be sure that—year in, year out—if the temperature drops dramatically, they will get help with energy bills. We should be proud of that.

[Mrs Main]

The Secretary of State is making an enormously persuasive argument, far more persuasive than simply continuing with Warm Front, which was not targeted and certainly did not reach the people it should have reached. This is a much better use of public money.

[Mr Davey]

I will come on to the energy efficiency part of our measures; at the moment, I am showing how we are using money very effectively to help people with their bills.